Dividend Plays

[bar1080]

I've been 1000% accurate about AOD since I wrote my first post on my AOD board on June 2, 2012:


"Understand the fat fake dividend is partially Return Of Capital. That is, you give AOD a lot of money and they pay you back a bit of YOUR money every month. And you pay them fees for that! Like moving cash from one of your pockets into another.

I've followed Closed End Funds for decades and sometimes bought them... But only if the discount is >15% and better yet >20% and preferably with a chance of being "open ended."

Who needs a monthly payout which is just a sales gimmick targeting low-income retirees. Certainly those who buy CEF's on the IPO are unsophisticated because the funds almost always go to discounts. Paying monthly is costly for the fund (although AOD's expense ratio isn't bad).

Aside from those endemic problems, AOD's stock portfolio has underperformed the S&P 500 consistently. A good S&P 500 ETF index fund such as SPDR (SPY) would have beaten AOD by miles.

What interests me is that AOD is about the only CEF with an active group on IHUB. I'm following along... Will be reading the SEC filings and learning more about this fund."


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